Q: This membership addition is still pretty low compared to the same quarter last year. What kind of full year target do you have in terms of membership adds?

A: We do not give guidance but let me tell you certain things. We did few things. We were finding that we need to improve our membership base. For example, we cut 60 month installment plan and brought it down to 48 months. We increased our down payment from 10% to 15%. Ultimately, we are a member centric organization. We have to make sure. We have good quality members at the resorts. We have to make sure that our delinquency rates are very low and these are some of the steps that we took.

There has been on and off stocks of, sometimes are sales people push, we got ride of a lot of people. We did a survey and found out who were the people who were not following the company’s ethics policy. So we did a lot of cleaning up in the organization in the month of April and May and that is what has affected us but the June numbers bounce back.

That is what gives me the confidence that things will bounce back substantially. It is not a market factor it was an internal organisation structuring problem.

Effect of this measure was so much that it brought down membership sale revenue by ~30%.

I am surprised they took so long to realize that their marketing staff is not following company' ethics policy, (70+ consumer Case , Internet forums filled with complaints of marketing staff and direct feedback to management) or they were conveniently ignoring problem until consumer opposition on the internet got stronger and started to bite back.